Stamp Duty
A tax charged on certain transactions, such as buying UK shares or property.
In plain English
A tax charged on certain transactions, such as buying UK shares or property.
Stamp duty is a tax on transactions, named after the old practice of stamping legal documents to show the tax was paid. In the UK, buying shares in most UK companies carries a small stamp duty charge, and buying property carries its own version.
It is one reason UK traders often use CFDs or spread bets, which do not involve buying the shares themselves. Rules vary by country and change over time, so check the current ones.
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